ECONOMICS

Detailed explanation-1: -The policy compensates employees if they are injured at the workplace. Work-related fatalities and illnesses are also covered under this policy. This type of insurance also provides financial relief to employers as it can cover the legal costs when employees press charges.

Detailed explanation-2: -In case of death, the minimum amount of compensation fixed is Rs. 1.20 Lakh and maximum Rs. 4.56 Lakh, whereas in case of permanent total disablement the minimum compensation fixed is Rs. 1.40 Lakh and maximum Rs.

Detailed explanation-3: -Every employee (including those employed through a contractor but excluding casual employees), who is engaged for the purposes of employer’s business and who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act.

Detailed explanation-4: -It offers compensation to the employees who suffer or die total or partial disablement because of an accident while on work. The compensation is paid by the employer and an employee who is eligible to get compensation from ESIC cannot claim compensation under the Employee’s Compensation Act, 1923.

Detailed explanation-5: -Employees not entitled to compensation for injury caused by his own negligence. (employer not responsible for negligence on the part of employees.)